Sending a kid to college can be a scary time for everyone involved. It means lifestyle changes, moving away, and a lot more independence, all of which are good but sometimes frightening things. On top of all this, college can be an economic burden, and it raises a lot of questions about how best to pay for something so enormous. There are lots of opinions on how to split paying for college between parents and students, so here are a few thoughts to consider when making these financial decisions.

Paying for College Can Make Kids More Responsible

Oftentimes, higher education will be the first major investment your child makes. Thus, paying for some of it themselves will help them both value their education and make sure they understand the cost that comes with the investment. Working to pay for school while also studying can mean a lot of effort and sacrifice, but it can also create a better work ethic for students, which at the end of the day is a valuable asset. Additionally, budgeting is a valuable skill that will serve students throughout their lives so starting early only means more practice.

Don’t Forget About Retirement

Most financial experts agree that sacrificing retirement for your kid’s education is not a good choice for a number of reasons. First, while there are many different ways to pay for college, including scholarships, loans, and work, there are far fewer options in paying for retirement. Secondly, losing retirement assets and relying on your kids can often be more expensive in the long run than student loan debt. Student loan debt may be stressful and undesirable, but in the grand scheme of things, it is often one of the most manageable and predictable forms of debt.

A Stake in Education Can Improve Academic Performance

When kids are personally helping to pay for their own education, their academic performance will likely improve. Knowing both the aid scholarships can bring and the importance of their degree for their futures can make sure that kids are truly committed to working their hardest in school. Also, kids who have a job during college often spend more time studying than those who don’t, as opposed to what many people think. More free time doesn’t necessarily equate to more study time so having a job can improve life for students both economically and academically.

Grades Come First

On the other hand, having parents’ help in paying for college can be very important for many students. Hardworking students who have received academic scholarships will need to make sure they have the time to invest in keeping their grades high. Having some aid from parents can relieve some of the pressures of paying for everything themselves, ensuring that students can get the greatest benefit from merit scholarships, which reduces debt for everyone in the long run.

Avoid Long-Term Student Loan Debt

Although student loan debt can be managed responsibly, it is an economic pressure that should be avoided if possible through responsible means. Having some help from parents in conjunction with their own work and scholarships can greatly reduce the amount of debt students are loaded with upon graduation, which will improve their long-term financial prospects. Just keep in mind that avoiding student loan debt shouldn’t be at the sacrifice of other more important aspects of your finances.

How to pay for college is just one of the many life decisions that must be made. Along the way, Federated Bank is here to assist you in your financial journey. While we do not offer student loans, we can answer your questions about other products and provide reliable personal banking services, just as we’ve been doing for over 100 years.

Credit scores can often be confusing and difficult to navigate, but that’s not a reason to ignore them. There are serious benefits to understanding your credit score. A good credit score can help you reap benefits in nearly every aspect of your life, sometimes in the places you least expect. Here are just a few benefits of a good credit report that you should make sure to know about.

Better Interest Rates

The interest rate is effectively the cost of money that you have to pay when you borrow from someone else. Typically, the interest rate you must pay correlates directly with how good your credit score is. A high credit score signals to the lender that you are a responsible borrower, and thus, you are rewarded with a lower interest rate. The money you save on your interest rate can be used to pay back more of your balance, or it can go towards other parts of your budget. A good credit score can help with car loans, credit cards, mortgages, or other loans, which makes a big difference in your overall finances.

Negotiating Power

“My mama told me, you better shop around.” These words of wisdom don’t just apply to dating but are actually valuable advice for getting a loan or credit card as well. A good credit score gives you the power to shop around for a lower interest rate or a higher credit limit. People with good credit scores can also qualify for rewards with their credit cards, which can offer extra spending money or even bonuses that go towards additional purchases. On the other hand, a low credit score means creditors typically will be more stringent with their loans terms and you won’t have as many options.

Refinancing

When your credit score increases, you may have the option to refinance some of your loans, which can save you thousands of dollars in interest. Even though creditors may not advertise this option, it’s a valuable tool for borrowers to look into and it’s a great way to use your high credit score to your advantage.

Trust

At their most basic level, credit scores represent how much someone can trust you economically. Just as relationships with friends and family strengthen with trust, benefits abound when those you interact with economically trust you. People with high credit scores find it easier to rent homes or apartments, get lower car insurance rates, get a contract for their cell phones, and avoid security deposits on utilities. These little savings add up over time to make your finances healthier, and it all comes from the trust reflected in your credit report.

Bragging Rights

A good credit score puts you in an elite group of people. Like being a member of a country club, being a member of the responsible borrowers’ club brings benefits galore, and it’s something to celebrate. Put your good credit score to work for you, and your budget can see definite rewards.

Whatever your credit score, Federated Bank can help you determine the best loan options. We have a range of flexible lending options, including specialty mortgages, some of which feature a relaxed credit requirement. When you need a mortgage or other type of loan, our experienced lenders will work with you to find the right loan for you.

Starting a business is a little bit like planting a garden. In the beginning, you set aside space, till the soil, and plant seeds. But for this garden to succeed, it needs fertilizer and water on a regular basis. Just like a garden, a small business needs regular care and investment so that it can flourish and produce a harvest. Fortunately, there are some simple small business investments that can make a big impact on your company to help it thrive.

1. Business Improvements

One of the most common ways to invest in your business is with improvements to the business itself. We all want to strive to be the best we can, and your company should be no different. Whether you’re updating technology, improving customer service, or finding the best space for your business to work within, simple business improvements like these can help you reap great rewards.

2. Outsourcing or Hiring Help

Let’s face it, as much as we wish we could, we can’t do everything ourselves. Everyone has a unique skill set as well as a limited amount of time. Outsourcing or hiring help can be an aid to your company because it brings experts from other fields to grow your business. Perhaps an expert in human resources to manage your staff might be just the hire your business needs. Or maybe someone to manage your business’s finances could help free up your time for what you really excel at. Outsourcing and hiring can make sure each aspect of your business is working as best it can, which will support the growth of your business as a whole.

3. Marketing

No matter how great your business idea may be, without customers your business will not grow. That’s why marketing is one of the most critical tools for a growing business to make use of. Social media, blogs, radio, print ads, search engine optimization (SEO), the list goes on and on. There’s a plethora of ways to grow and sustain your customer base. Whether you invest the time to create your own campaigns or hire an agency to take advantage of their expertise, marketing is an easy choice for small businesses to invest in.

4. Invest in Yourself and Your Team

Believe it or not, learning is rarely over when you graduate from school. For the small business owner, picking up new skills and honing your talents is a lifelong process that is crucial to your company’s success. Taking classes or hiring career coaches can aid in this process to help you improve as a business owner. These benefits can also extend to your team. Just like you may diversify your finances, diversifying skills is a great way to add strength and stability to a business.

Investing in your small business is a critical part of making sure it succeeds in the long run. Oftentimes, these investments can seem overwhelming or expensive at first. That’s why Federated Bank offers flexible commercial loan options to help you finance your business goals, along with friendly experts who can offer their years of experience to help you make the right loan choices. Read more about our business loans on our website or better yet, come in and talk with one of our commercial lenders.

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